The Insurance Corporation of British Columbia (ICBC) is the primary provider of auto insurance in the province of British Columbia. While ICBC is mandated to provide coverage, there are situations where they may deny coverage if they find a driver is in breach of their insurance contract. This leaves policyholders vulnerable and financially burdened for the financial consequences of a crash. This blog post aims to shed some light on the complexities of ICBC breaches and denials and to provide some information to navigate these challenging circumstances.
Understanding ICBC Breaches
A breach of insurance occurs when the insured (the owner of the vehicle and/or driver) fails to uphold their obligations as outlined in the insurance policy. This can happen for various reasons, including:
- Providing false information on your insurance application or during a claim investigation.
- Driving under the influence of alcohol or drugs can lead to a denial of coverage, even if you are not at fault in an accident.
- Failure to comply with policy conditions or conditions of their driver’s licence, such as timely reporting of accidents, cooperating with ICBC’s investigation, or having a supervisor while driving, can result in a denial.
- Being convicted of any Criminal Code driving-related offence is an automatic breach of one’s insurance contract.
Consequences of an ICBC Breach
An ICBC breach can have severe and far-reaching consequences for the policyholder. If ICBC determines that an insured is in breach of their insurance policy, this means they are uninsured at the time of the incident. This lack of coverage leaves the individual personally liable for all damages and losses arising from the event, which can lead to significant financial burdens and legal complications. Generally speaking, ICBC will compensate third parties for their losses even if they find a breach of insurance, however, ICBC will then seek to recover the amount they have paid out from the breached party.
If an insured is breached, they will be personally responsible for covering the costs associated with repairing or replacing their vehicle. This includes any damage caused to the bodywork, engine, interior, or any other components of the vehicle. Additionally, they will be held liable for any damage caused to other vehicles involved in the accident.
A breached insured will also be held liable for any personal injuries to the other parties involved. This may include rehabilitation costs associated with physical therapy or long-term care, and lost wages resulting from time taken off work due to the injuries.
Beyond the damage caused to vehicles and persons, a breached party will also be responsible for any damage caused to property other than vehicles during the accident. This could include damage to buildings, fences, road signs, or any other structures or objects affected by the accident. The breached party will be liable for the repair or replacement costs associated with this property damage.
Legal Consequences
There are also a number of legal consequences that follow a breach of insurance:
- Breaches of insurance involving allegations of fraud or attempted fraud may lead to criminal or other charges.
- ICBC may sue the breached party for the losses they incurred, paying out the claims of the aggrieved parties.
- If ICBC has obtained a judgment and the debtor is unable to pay the judgment debt, ICBC may initiate collection actions, such as wage garnishment or asset seizure.
- ICBC may cancel or deny the renewal of a debtor’s driver’s licence or insurance while there is an outstanding debt.
- Unpaid judgment debts can negatively impact your credit rating, making it difficult to obtain loans or credit in the future.
It is important to note that the consequences of an ICBC breach can vary depending on the severity of the accident and the extent of damages and losses incurred. However, in all cases, being breached by ICBC is a serious matter with potentially devastating consequences.
Conclusion
If you were in an accident and may not have met a condition of your insurance policy, it is crucial to seek legal advice from an experienced lawyer specializing in ICBC claims as soon as possible. They can help you understand your rights, explore your options, and guide you through the complex process of dealing with ICBC.
